Question

starting from the initial situation of consumer equilibrium,suppose that the marginal utility of a rupee increases.will it increases or decrease the quantity demand of a product ​

Answer 1

Answer:

When it comes to starting from the initial situation of 'consumer equilibrium', suppose that the 'marginal utility' of a rupee increases', it then decreases the quantity demanded of the product.

Explanation:

Marginal utility falls when the composition is more according to the 'law of diminishing marginal utility'. In this case, marginal utility is increasing which would be possible only when consumption is decreasing.  

Therefore, the quantity demanded of the product would decrease.

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